Managing Internal Rental Agreements

When an internal purchase order (PO) is printed with a PO type configured for internal rental, a temporary internal rental agreement is automatically created within the delivering division.

When this temporary internal rental agreement is activated, the PO is automatically confirmed.

The line type I, 'Internal', indicates that the rental agreement is internal.

Maintain internal rental agreement

If any configuration is missing when the internal rental agreement should be created, this is indicated by an application message, hold codes, and status.

A sorting order and view can be created in 'Rental Agreement. Open' (STS100) and 'Rental Logistics Toolbox. Open' (STS140) to identify and manage the internal rental agreements.

If a separate rental agreement order type is used in the internal rental process, this can be used to filter. To identify a specific internal rental agreement based on a PO number from the ordering unit, use the customer's order number (CUOR) to filter in (STS100).

We recommend that you have one sorting order and view for searching on hold code (AHLD) 16 and 17, to find internal rental agreements that were not created correctly.

The easiest way to find any status 04 on an agreement line is to use (STS140) and search for status 04.

This table shows scenarios that can occur for an automatic creation of an internal rental agreement:


Problem	Cause	Indication	Action
No internal rental agreement created.	Mandatory configuration is missing for the agreement header, for example, customer number is not found, or agreement order type is missing for the customer in 'Customer. Open' (CRS610).	An application message is created in 'Application Message. Open' (CRS420) and an email is sent to the user if 'Email Address. Open' (CRS111) is configured to do so.	Check all required data and ensure to configure what is missing, see Defining Internal Rental.
Internal rental agreement is created with hold code 16.	The configuration necessary for the agreement header to be created was found, but there is still some data required for completing the agreement header.	Hold code 16 on agreement header.	Step through the agreement header. An error message indicates the field that has incorrect or missing data. Correct the data and use related option 33='Internal rental - recreate lines' in (STS100) to retrieve the lines from the PO.
Internal rental agreement is created with hold code 17 and one or more lines are missing.	Mandatory configuration is missing for the agreement line. The most common mistake is that the item number is not set up on the delivering warehouse in 'Item. Connect Warehouse' (MMS002).	Hold code 17 on agreement header and one or more lines are missing.	Check the PO lines to get an indication of what is missing, item number for example. Correct what is missing. If it is the item, ensure this is correctly configured on the delivering warehouse, both yard and on-hire warehouse. Use related option 33='Internal rental - recreate lines' in (STS100) to retrieve the missing lines from the PO. If lines are added to the internal rental agreement, but hold code is still 17, this means a new line with missing configuration was found.
Internal rental agreement line in status 04.	The configuration necessary for the agreement line to be created was found, but there is still some data required for completing the line or the serial number set is not available.	Status 04 on agreement line.	Step through the agreement line. An error message indicates if a field has incorrect or missing data or if the equipment is not available. Correct the data. If a non-available serial number has been set, the serial number must be changed or removed.

For example, if a PO has three lines and line number 2 cannot be created, line number 1 and 3 still create internal rental agreement lines. When the cause of line 2 not being created is corrected and related option 33 in (STS100) is used again, this line is created as the third line on the rental agreement. This means that the order of the internal rental agreement lines is not necessarily the same as on the PO. However, the reference number on the PO line and rental line keeps them together.

Note: Hold code 17 indicates that a line could not be created, but not which line. If there are several lines missing, it means that all of them have missing configuration which must be corrected.

There is also a description in the section Rental agreement information of how information is retrieved to most of the fields on the agreement header and line for an internal rental agreement.

Expected number of invoices to be sent

A value is automatically set in the field 'No. periods' in 'Rental Agreement. Open Lines' (STS201). This value represents the number of invoices expected to be sent to the internal customer. This value is calculated based on agreement period and rate type.

If rate type is week, the number of days in the agreement period is divided by 7.
If rate type is month, the number of days in the agreement period is divided by 30.
If rate type is period, or best price, the invoice interval is used to decide which number to divide the agreement period with.

For example, if the agreement period is 3.5 months (75 days) and the rate type is month, the number of days are divided by 30. This means 75/30=2.5. The amount is always rounded up, so the value in the field 'No. periods' is then set to 3.

To get a correct value, we recommend that you have an invoicing period matching the rate type.

If the value calculated in 'No. periods' is not correct, it should be updated before activating the agreement line to avoid problems with invoice matching at the rental division.

If agreement period is prolonged, the value in 'No. periods' is not recalculated. If the internal rental agreement is not yet activated, the value must be changed manually to get the correct quantity on the PO subline.

If the agreement line has already been activated, the quantity on the subline can be changed, as long as the goods receipt or invoice matching has not yet started. To change the subline quantity on a confirmed PO, the record created during PO confirmation in 'Purchase Order. Display Line Trans' (PPS330) must first be deleted.

Note: Rate type hour is not supported in the internal rental solution.

Rental agreement information

This table shows the default values for the internal rental agreement header and line at time of internal rental agreement creation. Fields not mentioned in this table are set by default in the same way as when creating a rental line type 5.


Internal agreement information	Comment
Agreement customer and site	Customer number is retrieved using 'Supplier. Connect Our Customer Number' (CRS680) or 'Warehouse. Open' (MMS005), see Defining Internal Rental.
Agreement order type	Retrieved through internal customer in 'Customer. Open' (CRS610).
Address information	Address number and information is based on the address information set on the PO line. A new address number is created in 'Customer. Connect Addresses' (OIS002) if necessary. See Managing Internal Rental Delivery Address Information.
Valid from date	Retrieved from the requested delivery date from the PO lines.
Valid to date	If return date is specified in 'Purchase Order. Update Loan' (PPS216), this is set as valid to date on the internal rental agreement line. If not, the valid to date is calculated based on the return period in (CRS610) or 'Rental Agreement Order Type. Open' (STS020).
Facility	This is retrieved through the supplier in 'Supplier. Define Purchase & Financial' (CRS624).
Depot and warehouse	Supplying warehouse is retrieved through the supplier in (CRS624) and this warehouse must be connected to a depot.
Customer's order number	The internal PO number.
Currency	The field value is set based on the currency of the PO. This cannot be manually changed on an internal rental agreement.
Language code	The language is retrieved from the customer record, not from the purchase order.
Agreement line number	Defined based on the rental agreement order type setting. Note: The PO and internal rental agreement may not necessarily have the same line numbers or come in the same order, if some lines are stopped with hold code 17.
Item number	The field value is set based on the PO lines item number.
Quantity	Retrieved based on the purchase quantity and U/M of the PO line. Note: PO line must be specified in the basic U/M.
Serial number	If serial number is set on PO line in (PPS216), this is set on the internal rental agreement line.
Price list	Retrieved from customer. Price from PO is not retrieved. The price from the rental agreement line is later set on the subline, if a subline is created.
Number of periods	Calculated based on agreement period and rate type. This value is later set on the subline, if a subline is created.
Delivery method	Currently, there is no option to retrieve delivery method from the internal PO.
Delivery terms	Currently, there is no option to retrieve delivery terms from the internal PO.
Your reference 1	Currently, there is no option to retrieve contact information from the internal PO.
Payment terms	The current solution does not provide an option to respect the payment term of the internal PO, because this information is always considered as owned by the selling unit.
Payment method	The current solution does not provide an option to respect the payment method of the internal PO, because this information is always considered to be owned by the selling unit. The customer decides how to pay the invoice.

Update internal rental agreement

When the internal agreement is activated, the PO is set to status 35-'Confirmed' and some data is updated on the PO based on the internal rental agreement. See Rental Agreement and Purchase Order Confirmation for Internal Rental.

Only the fields described in this document are updated automatically on the PO, and only once, which is when the internal rental agreement is activated.

Apart from this, no updates on the internal rental agreement automatically update the related PO. The same applies for the other way around, that is, no updates on the internal PO automatically update the related internal rental agreement.

There are restrictions when it comes to deleting or adding lines after a temporary rental agreement has been created or activated. These restrictions are described in Managing Internal Purchase Orders for Internal Rental.

You can never delete an internal rental agreement header if there are lines connected. If the entire agreement should be deleted, all lines must first be deleted.